At Ownwell, we track what California homeowners actually pay. California's median property tax bill is $5,134, far above the national median, according to our California property tax trends. In our 2026 National Homeowner Survey, 9 in 10 homeowners said they are concerned about rising property taxes.
Propositions 40, 41, 42 and 43 all sit on the same crowded November 3, 2026 ballot, which breeds confusion. California Proposition 42, if voters approve it, would target new state taxes on personal property and savings, not your home's real-property tax bill.
Here is what we cover:
What California Proposition 42 would do
Whether it changes your bill
Prop 42 vs. Prop 43 vs. Prop 13
What actually lowers your California bill now
Main Takeaways
California Proposition 42 is on the November 3, 2026 ballot; it is not current law.
If approved, it would ban new state taxes on personal property ownership and limit retroactive state taxes.
Those limits would apply to new taxes enacted or effective on or after January 1, 2026.
It does not change Proposition 13, your assessment or your current real-property tax bill.
The fastest ways to lower your bill today are an assessment appeal, a Proposition 8 review and the Homeowners' Exemption.
What Is California Proposition 42?
California Proposition 42 is an initiative constitutional amendment on the November 3, 2026 ballot. If voters approve it, it would ban new state taxes on personal property ownership. That covers business interests, intellectual property, and financial assets, including retirement and investment accounts.
Personal property means everything people own other than real estate. Think vehicles, business equipment and financial holdings, not your house or land.
The measure would also limit retroactive state taxes. Those are taxes applied to your conduct, activities or status from before the tax's effective date. In plain terms, the state could not reach back and tax something you did or owned in the past.
For homeowners, the key distinction is personal property versus real estate. Your home and land are real property, and they already sit under Proposition 13's rules. California Proposition 42 would instead draw a line around personal property, a category the measure aims to shield from new state taxes.
If approved, it would apply to new taxes enacted on or after January 1, 2026, and nullify conflicting taxes enacted after that date. You can read the full text of the measure and the California Secretary of State's official summary.
Every "does" in this section is really a "would, if approved." As an initiative constitutional amendment still pending a vote, California Proposition 42 changes nothing unless it passes on November 3, 2026.
Does California Proposition 42 Change My Property Tax Bill?
No. If approved, California Proposition 42 would target new state taxes on personal property and financial assets, not real estate. So it would not change how your home is assessed or the amount of your annual property tax bill.
At Ownwell, we point people to what actually drives the number on the bill. Three things do:
Your assessed value under Proposition 13
Local voter-approved bonds and Mello-Roos charges
Any exemptions you claim
Proposition 42 touches none of those. For a fuller breakdown, see how California property taxes are calculated.
If your taxes are part of your mortgage escrow, your lender pays the county for you. If you have no mortgage or escrow, you pay the county directly on the due date.
Here is what stays unchanged under Proposition 13. Your assessment protections stay in place, and your right to appeal does not change. This measure is not the lever that moves your bill.
How Much Are You Over Paying?
Proposition 42 vs. Proposition 43 vs. Proposition 13: What's the Difference?
Three propositions with similar numbers create real confusion. At Ownwell, we keep them straight so you do not confuse a proposed personal-property rule with the law that actually caps your assessment.
Measure | What It Governs | Effect on Your Assessment | Status | Effective Date |
|---|---|---|---|---|
Prop 13 (1978) | Caps the base tax rate at 1% and annual assessed-value growth at 2% | Directly limits your assessed value | Enacted (current law) | 1978 |
Prop 42 (2026) | Would prohibit new state taxes on personal property and retroactive state taxes | No effect on real-property assessments | On ballot Nov 3, 2026 (not law) | Only if approved; reaches taxes on or after Jan 1, 2026 |
Prop 43 (2026) | Reported to concern the vote threshold for local special taxes | Does not change assessments | On ballot Nov 3, 2026 (not law) | Jan 1, 2027 if approved |
Proposition 42 and Proposition 43 are separate measures. Proposition 43 is a different 2026 ballot question. If approved by voters, it would require two-thirds voter approval for local special taxes proposed through the citizen-initiative process.
You can read the details in our California Proposition 43 ballot guide.
Proposition 13 governs the math on your bill under California Constitution Article XIII A. The State Board of Equalization (BOE) confirms Proposition 13 caps the tax rate at one percent, plus voter-approved bonds, and limits annual assessment increases to no more than two percent. To see how those caps work, read how Proposition 13 shapes your California property taxes.
When you see "Save Prop 13" messaging, it refers to these newer ballot fights, not a change to the 1% and 2% assessment rules.
What a Yes or No Vote Means, and the Fiscal Impact
At Ownwell, we keep the vote mechanics neutral and sourced. According to the Legislative Analyst's Office (LAO) analysis of Proposition 42, a YES vote means the state could not establish new taxes on the ownership of financial assets or other personal property.
A NO vote would let the state keep the option to establish such taxes.
The same LAO analysis describes the fiscal effect as a possibility that state tax revenues will not rise as much in the future. It says when and by how much is unclear, and it gives no dollar estimate.
There is also a ballot interaction to consider. According to the LAO, if California Proposition 42 receives more yes votes than a conflicting same-ballot measure, that measure could be void even if it also passes. The measure most often named alongside it is Proposition 40, the wealth or "billionaire" tax.
We take no position on how you vote. Our aim is to keep the facts clear so you can weigh the measure on your own terms.
For context on why this is on the ballot, CalMatters' 2026 voter guide explains that Proposition 42 is meant to make it harder to create a wealth tax in California.
What Actually Lowers Your California Property Tax Bill Now
California Proposition 42 will not cut your bill, but at Ownwell we see four levers that can. Here they are in order of impact:
Appeal your assessment with your county Assessment Appeals Board (AAB). In California, this is an "appeal," not a "protest" or "grievance."
Request a Proposition 8 decline-in-value review if your January 1 market value fell below your factored base-year value (Revenue and Taxation Code Section 51).
Claim the Homeowners' Exemption, a $7,000 assessed-value reduction worth roughly $70-$80 a year (Revenue and Taxation Code Section 218).
Check Proposition 19 transfers if you are 55 or older, severely disabled, or a disaster victim (Proposition 19, approved November 2020).
A quick note on timing. The California appeal window opens July 2 and closes on either September 15 or November 30 depending on your county, with no single statewide date (Revenue and Taxation Code Section 1603). Confirm your current-year deadline with your county AAB, and remember the board can raise or lower the value.
The February 15 deadline for the full 2026 Homeowners' Exemption has passed; the 2027 deadline is expected around February 15.
For step-by-step guidance, see how to lower your property tax assessment. To confirm what you qualify for, review our list of California property tax exemptions.
Unsure Which Exemptions You Qualify For?
Here is a worked example for a California homeowner. Treat it as illustrative only, not a guaranteed result. It uses California's median effective rate of 1.21%, the statewide figure from the California property tax trends linked above.
Item | Before Appeal | After Appeal |
|---|---|---|
Assessed value | $750,000 | $700,000 |
Effective tax rate | 1.21% | 1.21% |
Annual tax bill | $9,075 | $8,470 |
Annual savings | n/a | $605 |
A $50,000 reduction in assessed value at a 1.21% effective rate trims the annual bill from $9,075 to $8,470. That is $605 in yearly savings, and your result depends on your assessed value and local rates.
An appeal directly targets your assessed value, the figure that sets your bill. A strong case rests on recent comparable sales, condition issues, and errors in the assessor's record. Because the AAB weighs both sides, a weak filing can leave your value unchanged or higher.
Many homeowners never take the first step. In our 2026 National Homeowner Survey, 74% of homeowners have never appealed their property tax bill. Of those, 57% did not know they had the right to.
If your county's appeal deadline is near, let us build your case before the window closes.
How Ownwell Can Help
We handle California assessment appeals end to end. That means gathering evidence, filing with your county and managing the process with the Assessment Appeals Board, all with no upfront cost.
Our California appeal fee is 35% of your first-year savings, so you only pay if you save. You can review the details on Ownwell's contingency pricing page.
The proof is in our results. Our customers have seen an 88% success rate and $774 in average annual savings, and we hold a 4.7-star rating across 3,000-plus reviews. These figures reflect Ownwell customers specifically, not all California filers.
We combine local market expertise with software that builds your evidence. Then we represent you through the county process, so you do not have to attend the hearing yourself.
Own commercial or investment property too? We handle those appeals as well, using the same contingency model. When you are ready, you can file a California property tax appeal with us.
Want to Try What Made Ownwell Famous?
Frequently Asked Questions
Is California Proposition 42 the same as Proposition 13?
No. They are different measures from different decades, and as the comparison above shows, only Proposition 13 is current law.
Will California Proposition 42 raise or lower my property taxes?
Neither. It concerns proposed new state taxes on personal property and financial assets, not the real-property assessment behind your bill.
When do Californians vote on California Proposition 42?
Election Day is November 3, 2026; counties mail ballots on or before October 5, and the last day to register is October 19, per the official voter guide.
Does California Proposition 42 change Proposition 13 protections?
No. If approved, it would leave Proposition 13's 1% base rate and 2% annual assessment-growth cap untouched.
What can I do now if my property tax bill is too high?
You can appeal your assessment with your county Assessment Appeals Board, request a Proposition 8 review or claim the Homeowners' Exemption, as detailed above.
Written by the Ownwell Team.
